If bad debts are not significant,which method is best to use? A)direct writeoff method B)percentage of credit sales method C)allowance method D)aging of accounts receivable method

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Quizplus · Accepted Answer

If bad debts are not significant, the direct write-off method is the best choice because it is simple and it matches expenses with revenue. Under this method, bad debts are written off as they become uncollectible, such as when a customer's account is declared uncollectible. This method is only appropriate when bad debts are expected to be infrequent and immaterial.

If Bad Debts Are not Significant,which Method Is Best to Use